Making the decision to move to New York City can be the start of a very exciting experience. While NYC has a lot to offer to the people who make it their home, it’s important to understand the realities of living in the most populated city in America.
For many people, the decision to move to NYC comes as a result of a job offer. One reason that taking a job in this city can seem like such a great opportunity is that salaries are often higher than they are in other parts of the US.
Although that may initially make you feel like you’re going to have a lot of extra money in your bank account, your outlook will likely change once you start digging into the cost of New York City Apartments for rent.
Reasons Why Rentals Are So Expensive
When you start seeing the high prices for apartments that would be considered small in other parts of the country, one of the first thoughts that may come to mind is why exactly are NYC apartments so expensive? As with most questions related to financial matters, there’s not just one factor at play. Instead, the high prices of New York City apartments for rent are the result of several factors. Those factors include:
Limited Space & Zoning Rules
Over nine million people live in NYC. Since everyone needs a place to live, there’s definitely not a surplus of available apartments. Add to that the fact that zoning rules prohibit much of the city from becoming denser, and it’s easy to see why the prices of the limited supply of apartments get driven up.
The Impact of Rent Control
When you hear about an extremely cheap apartment in New York City, chances are it’s either rent controlled or a scam. Because people in rent-controlled apartments often stay there until they pass away, the price of apartments that are actually available for rent gets driven much higher than the median rent across all of New York. While the impact of rent-regulated apartments isn’t as big of a factor, they do still factor into this equation.
High Property Taxes
Other than Detroit, where property values have plummeted, New York has the highest property taxes in all of the US. While renters don’t directly pay taxes on where they live, this high tax rate does get passed to them in the form of higher rents.
Favorable Tenant Laws
Because New York’s laws make it very difficult to evict tenants, landlords are often very strict about credit requirements. It’s also common for landlords to charge the state’s legal maximum of a full month’s rent as a deposit.
Despite New York’s high rents, apartments that hit the market generally get snapped up very fast. Since the city has such a competitive rental market, even renters with a healthy budget can feel overwhelmed. If you’re currently in this position, find out how Elika renter’s representation can help you start your new life in NYC in a great apartment.